BRAND FINALE: Back with a bang

Everyone deserves a second chance (to prove themselves). So do brands. Especially if they were booted out from a market or fizzled out in the face of stiff competition. 

The last few months have witnessed global brands like Nokia, Blackberry and European consumer electronics major Thomson re-entering the lucrative India market.

Although it is early to determine whether these brands will re-establish their lost glories, a second innings is something most brands seek out, more so if the market is India.

Says Akshar Peerbhoy, COO of creative agency MAA Communications, “Brands such as Thomson had their days in the sun in India, but then they gradually were outdone and have now re-entered for a second chance of creating a strong foothold."

In the second innings, brands have to regain lost ground by erasing any negative stimuli that exist pertaining to their exits. "For the second innings, a brand has an uphill task in the market,” Peerbhoy said.

Brands that re-enter a diverse market have to be armed with strategies that are re-worked, with new partners, and with tweaked products and pricing, say experts.

Manish Sharma, president and CEO, Panasonic India and South Asia, says when the brand began its second innings in 2008, they adopted a phased approach to establishing their presence. 

Sharma says the first stage of this approach was aimed at building an immediate brand connect and was achieved through initiatives like the Panasonic Open Tournament, cricket sponsorships, etc. 

The second stage for Panasonic involved impact marketing and signing on brand ambassadors (such as Ranbir Kapoor). “The next stage was creating a strong product portfolio and setting up our manufacturing plant in Jhajjar. This was followed by strengthening our network, our touch points and further expansion,” says Sharma, who adds the approach has been lucrative for the brand, as it has doubled brand awareness and consolidated market presence.

Peerbhoy says since re-entry is a herculean task, only very few brands have succeeded in regaining their top position. “Kellogg’s is a unique case.”

The brand’s first breakfast cereals in 1994 failed to enter Indian stomachs as the concept was new. But when the brand launched its Frosties sweet flakes in 1997, the result was a grand success. “Kellogg’s targeted the health-conscious consumer and positioned itself as a healthy and fun alternative to the staple breakfast. They established their brand equity by reducing their price and offering wider product sizes to appeal to different customers,” says Peerbhoy.

Competitive pricing, backed by aggressive marketing and campaigning can help re-entered brands to catch up with the competition. According to Anil Talreja, partner, Deloitte India, “brands that re-enter should engage and invest in media campaigns to remind people of their new presence, apart from launching fresh advertising campaigns.”

But this is a challenge, say experts, since competition reacts and offers even more competitive prices and stronger campaigns. 

Another way of getting even with competition post a re-entry is through the acquisition of home-grown brands that provide a synergy and a ready consumer base. Experts point out the classic case of Coca-Cola, which re-entered India in 1993 and acquired Parle’s popular beverage brands like Thums Up and Maaza. Through Parle, which then commanded a lion’s share of the soft drinks segment, Coca-Cola gained access to the former’s brand legacy, bottling and distribution networks and thus a competitive advantage.

Irrespective of the social media influence that exists today, for a brand regaining its equity, social media is a tool that only gives them the benefit of letting the market know that the brand exists, point out experts. 

“For a brand like Panasonic, installation, service and repair are potent aftermarket functions which create an on-ground perception for the brand in consumer minds. Offline is as important as a digital presence,” says Sharma.

But in case even a second innings fails, what pathway should a brand adopt then?

“In such a case, it is best to close the chapter,” says Peerbhoy. 

Like General Motors did recently. The carmaker, which re-entered India in 1994 (after exiting in 1954), decided to stop selling cars in 2017 due to lack of profits and success. Entering a third time would be a suicidal attempt, warn experts. 

“The investment it takes to regain a market is not small and on failing, the negative brand recall created would be an even larger aspect to change,” says Peerbhoy.

SECOND INNINGS

• Competitive pricing, aggressive campaigning can help them to catch up with the competition 
   
• Social media only gives a brand the benefit of making its presence felt 
   
• But in case the move fails, it is best for the brand to close the chapter, experts believe